Interview Notes

David Stone is 28 years old and single. He provides all of his own support.

David works at a gas station and earned $18,500 in wages.

David took two management courses at a community college to improve his job skills. He was less than a half time student. He wants to know if that qualifies for any educational tax benefit.

David took an early distribution from his IRA of $2,000 for tuition and $500 for emergency repairs of his air conditioning system. This is the first time he has taken a distribution from his IRA.

David is a U.S. citizen and lived in the U.S. for the entire year. He has a valid Social Security number.

Advanced Scenario 6: Test Questions For which of the following IRA distributions will David owe an additional tax of 10%?

a. $2,000 for tuition

b. $500 for emergency repairs

c. Both a and b

d. Neither a nor b